Toy Train Maker Loses Appeal In Lead Coverage Suit

Law360, New York (April 5, 2010, 6:29 PM EDT) -- A federal appeals court has found that Ace American Insurance Co. does not owe coverage to Thomas The Tank Engine toy maker RC2 Corp. Inc. for legal actions stemming from recalls involving lead-containing toys that were manufactured in China, finding that the policies exclude the claims.

A three-judge panel of the U.S. Court of Appeals for the Seventh Circuit ruled unanimously that the claims at issue occurred within the United States, putting them squarely within an exclusion for events arising in the U.S.

In issuing that...
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